Mile Square Real Estate

What lessons have be learned?

2010-01-20T15:26:00.000-05:00

A lot of the problems we are currently seeing with the mortgage industry today can be attributed to banks and mortgage brokers selling, higher risk, "higher profit" mortgages to people who would have been much better off with traditional lending products. Some estimates say that up to 55% of all subprime loans that were made during the boom were made to prime borrower with good credit and substantial down payments. Unfortunately, since the origination fees or Yield Spreads (how the brokers and lenders get paid) was higher on the subprime loans, these riskier subprime loans were often pushed onto unsuspecting consumers. It even been reported that in some cases banks contacted mortgage brokers who had already submitted client's applications and encouraged them to push the subprime loans to buyers.

So consumers who could have put 10 or 20% down and made the payments on a 30 year fixed loan were instead sold 0% down Adjustable Rate Mortgages. I've even heard of cases where people were told not to put 20% even though they had it available. Instead, they were told to hold onto the cash so they could do "something else" with it. Unfortunately, these buyers are now faced with mortgages that are adjusting above anything they can pay, or would have ever had to pay with a traditional mortgage product.

So what have we learned from this? Apparently, not much. Just last week I heard of a case in my office where a buyer was looking to to purchase a condo in Hoboken. The buyers applied for a loan through one of the major national banks. They had good credit and would be putting 20% down. With their great credit and substantial down payment they were approved for a loan. . . an FHA loan! That's right, this reputable national bank was selling an FHA loan to a couple with good credit and 20% down. Why? Well the origination fees on FHA loans are definitely higher so more money is to be had there, then there is the fact that FHA loans are guaranteed by the government so there is less risk to the bank. More money to be had and less risk for the bank. We can see why they would push the FHA loan.

The problem for the consumer? FHA interest rates are higher, even with good credit, and both an upfront and a monthly Mortgage Insurance premium are required, even with 20% down.

So has anything really changed? Apparently not, some banks still appear to be selling consumer loans that help their short term profits while increasing the consumers payments and costs.

Luckily in this case the agent working with the buyer noticed what the bank was trying to do and explained the situation to the client. The client is now getting a traditional mortgage through a mortgage company we recommend in the office. However, had this not been recognized this buyer would have been boosting the bank profits and their expense for years to come.

While the Hoboken condo market hasn't seen too many short sales or foreclosures, and in general has fairly secure loans, it is still important to recognize the causes of the current mortgage debacle and do your research on the type of loan you are being offered.

Andres Garcia
Sales Associate, CDPE
RE/MAX Gold Coast Realty
56 Newark Street
Hoboken, NJ 07030
Direct: 201 795-5200 x340
Andres@MileSquareRealty.com
http://www.MileSquareRealty.com

Search for homes from the comfort of your iPhone

2010-01-19T10:46:00.006-05:00

Meet the latest entrant to smartphone house-hunting: Realtor.com. The official Web site of the National Association of Realtors just unveiled a free app for the iPhone.

In addition to searching for homes, the new app will allow home buyers to search for open houses within a 20-mile radius, sorted by location or date. Users can take camera-phone pictures of listings as they tour them, assign them star ratings, jot notes on the phone, and quickly post listings to their Twitter or Facebook pages -- or e-mail them to friends, family and their real estate agents.

A search for Hoboken homes for sale resulted in 510 properties, right in line with the active inventory in town. Unfortunately, I will venture to say that the open house schedule will likely not be as accurate since agents are required to manually update Realtor.com with this information.

Andres Garcia
Sales Associate, CDPE
RE/MAX Gold Coast Realty
56 Newark Street
Hoboken, NJ 07030
Direct: 201 795-5200 x340
Andres@MileSquareRealty.com
http://www.MileSquareRealty.com

You can text the word “HAITI” to 90999 to donate $10 to American Red Cross relief for Haiti

2010-01-14T14:26:00.003-05:00

I know there's a lot of stuff circulating about how to help the earthquake victims in Haiti, but here's a really quick & easy way to donate. You can text the word “HAITI” to 90999 to donate $10 to American Red Cross relief for Haiti. I did myself this afternoon. If/when you send the text, you'll receive a text back asking you to confirm your $10 donation by responding "YES" and that's all it takes to send it on through. The donation gets added to your next phone bill.

http://www.redcross.org/portal/site/en/menuitem.94aae335470e233f6cf911df43181aa0/?vgnextoid=15c0c5a210826210VgnVCM10000089f0870aRCRD

Andres Garcia
Sales Associate, CDPE
RE/MAX Gold Coast Realty
56 Newark Street
Hoboken, NJ 07030
Direct: 201 795-5200 x340
Andres@MileSquareRealty.com
http://www.MileSquareRealty.com

Big things are happening at MetroStop!

2010-01-13T00:34:00.001-05:00

Big things are happening at MetroStop!

New businesses have signed on to move into the retail spaces at MetroStop. Moving to the retail spot on the north end of the building will be a convenience/grocery store. On the south end will be a restaurant. Both businesses are expected to open during the summer of 2010 once ABC approval is received for the restaurant and both spaces are built out.

In addition Metro Homes has announced that work is being done to improve both the lobby and roof deck and that the hallways throughout the building will finally see some color with their finished coat of paint.

It has also been reported that the vacant lot on 8th and Monroe has been sold by the bankrupt Monroe Arts center developer and another big developer has bought the parcel on 9th and Monroe from Tarragon. Hopefully we will see some movement on those lots soon.

Andres Garcia
Sales Associate, CDPE
RE/MAX Gold Coast Realty
56 Newark Street
Hoboken, NJ 07030
Direct: 201 795-5200 x340
Andres@MileSquareRealty.com
http://www.MileSquareRealty.com

The Year and decade in review

2010-01-12T23:26:00.007-05:00

In preparing my year end review for clients I came across some interesting information. In the last year of the decade we had our first down market of the new millenium, If you've owned your home since 2000 though, your home is still worth twice as much as it was back then.

Andres Garcia
Sales Associate, CDPE
RE/MAX Gold Coast Realty
56 Newark Street
Hoboken, NJ 07030
Direct: 201 795-5200 x340
Andres@MileSquareRealty.com
http://www.MileSquareRealty.com

FHA. Another bailout in the making?

2009-09-18T21:34:00.006-04:00

I've recently starting following Peter Schiff's economic analysis after viewing some online videos from a few years ago where he prophetically predicted the economic turmoil we are currently experiencing. While being interviewed on the economy and making these predictions he was openly mocked by analysts that said the good times would keep rolling. Unfortunately, he was right back then, and now he's predicting a new financial disaster in the making, FHA loans.

Watch the video. I really can't say I disagree. Are we simply repackaging subprime, 100% financing loans?

Peter Schiff is President of Euro Pacific Capital, Austrian Economist and Candidate for US Senate in CT.

Andres Garcia
Sales Associate, CDPE
RE/MAX Gold Coast Realty
56 Newark Street
Hoboken, NJ 07030
Direct: 201 795-5200 x340
Andres@MileSquareRealty.com
http://www.MileSquareRealty.com

Some sellers will just never get it!!

2009-08-25T11:08:00.001-04:00

It's a buyer's market. Some sellers just don't get that!

If Timothy Geithner is as bad at handling the economy as he is at picking bathroom tiles, he won't need to sell his house.

The Daily Show With Jon Stewart

Mon - Thurs 11p / 10c

Home Crisis Investigation

www.thedailyshow.com

Daily Show
Full Episodes

Political Humor

Healthcare Protests

The time to buy is now to take advantage of the First Time Home Buyer's Tax Credit

2009-08-22T14:53:00.007-04:00

Hoping to take advantage of the First Time Home Buyer's Tax Credit? If so, you only have about 4-5 weeks to find a home before the November 30th deadline. With the tougher lending standards closing times have been extended from 6 weeks to about 8 weeks. So if you're thinking about buying a home to take advantage of this opportunity, pick up the phone and call your Realtor. Time is running out. If you're not under contract by the end of September you could miss out on this great opportunity.

For more information on the First Time Home Buyer's Tax Credit visit:

http://www.federalhousingtaxcredit.com

Or watch our YouTube Video

Andres Garcia
Sales Associate, CDPE
RE/MAX Gold Coast Realty
56 Newark Street
Hoboken, NJ 07030
Direct: 201 795-5200 x340
Andres@MileSquareRealty.com
http://www.MileSquareRealty.com

Hoboken Mayor Arrested by FBI

2009-07-23T10:28:00.007-04:00

While not exactly real estate news, I think this news is definatley relevant to Hoboken Residents.

The mayors of two New Jersey cities, one of them being Hoboken's Peter Cammarano, and a state legislator are under arrest Thursday as part of a major corruption and international money laundering conspiracy probe.

Federal prosecutors say about 30 people have been arrested. They include Assemblyman Daniel Van Pelt, Hoboken Mayor Peter Cammarano III, Secaucus Mayor Dennis Elwell and Jersey City Deputy Mayor Leona Beldini. Federal prosecutors say several rabbis in New York and New Jersey are also arrested.

Cars are backed up four deep with suspects outside the FBI's Newark office.

Newark Mayor Cory Booker, who has fought corruption in New Jersey' largest city, says it's "an unbelievable morning so far."

No other information is immediately available.

Copyright © 2009 The Associated Press. All rights reserved

Andres Garcia
Sales Associate, CDPE
RE/MAX Gold Coast Realty
56 Newark Street
Hoboken, NJ 07030
Direct: 201 795-5200 x340
Andres@MileSquareRealty.com
http://www.MileSquareRealty.com

Short Sale Myths

2009-07-22T13:05:00.007-04:00

As a CDPE I would like to clarify some Short Sale myths. A short sale can be an excellent solution for homeowners who must sell and owe more on their homes than they are worth. Unfortunately, a number of myths about short sales have developed, and it is important to understand the reality of this process should you find it meets your current needs.

Myth #1 – The Bank Would Rather Foreclose than Bother with a Short Sale

This is one of the most common misconceptions. The reality is that banks do not want to foreclose on your property because the foreclosure process is incredibly costly. Banks, investors, and even the federal government have all publicly stated that if a person is qualified for a short sale, the deal needs to be considered. Overwhelmingly, banks receive more on their investment through a short sale than a foreclosure.

The qualifications for a short sale include:

Financial Hardship – There is a situation causing you to have trouble affording your mortgage.

Monthly Income Shortfall – “You have more month than money.” A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.

Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

Myth #2 – You Must Be Behind on Your Mortgage to Negotiate a Short Sale

While this may have previously been the case, today lenders are looking for verifiable hardship, monthly cash flow shortfall, or pending shortfall and insolvency.

If you meet these three requirements and believe that you soon may be unable to afford your mortgage, act immediately. Any delay could limit your options. Do not wait until the countdown clock to foreclosure has started and you have even less time left.

Myth #3 – There is Not Enough Time to Negotiate a Short Sale Before My Foreclosure

This is a myth that probably hurts homeowners the most. Many do not realize that foreclosure is a process, and that there is time to make decisions that may result in better outcomes.

The foreclosing party—in most cases a lender—can stall a foreclosure up to the final day of the process. Today, many lenders will stall a foreclosure with as little as a phone call from you explaining that you are trying to sell, and almost all lenders will stall a foreclosure with a legitimate contract. For real estate professionals who understand foreclosures and short sales, there is time available until the foreclosure process is complete.

Myth #4 – Listing My Home as a Short Sale is an Embarrassment

It is understandable to have reservations about letting the world know that you owe more on your home than it is worth. However, according to recent estimates, one out of five homeowners in the U.S. is in the same situation. You are to be congratulated for admitting you need help, taking action, and finding a professional who can work with you toward a solution.

With recent estimates showing 40-60% of U.S. sales will be short sales or foreclosures, you are not alone.

Myth #5 – Short Sales are Impossible and Never Get Approved

This is a complete falsehood. Are short sales more difficult to execute? Yes. Do you, as a homeowner, need to learn about a new process? Yes. Are they impossible? Absolutely not.

For example, agents with the Certified Distressed Property Expert® (CDPE) Designation receive thousands of short sale approvals on a monthly basis. These professionals have undergone extensive training in methods to help homeowners in distress and process short sales. While there are no guarantees in any transaction, more and more short sales are being approved regularly. This is far from an impossible process.

Myth #6 – Banks are Waiting on a Bailout and Not Accepting Short Sales

You may have heard this, but the reality is that banks (and the U.S. government) are trying to do anything they can, within reason, to avoid foreclosing on properties. It is preposterous to believe they would deny a short sale in hopes that some future legislation would pass and pay them for losses.

Today, more banks are aggressively pursuing short sales and working with agents who understand how to process them. Freddie Mac recently hosted a national training Webinar for real estate agents where they expressly stated the organizational goal of “eliminating distressed assets through modification or short sale.”

Myth #7 – Buyers are Not Interested in Short Sale Properties

This is a myth that potential sellers hear all the time. Thankfully, this is just not true. In fact, many agents are getting calls from buyers who say they only want to look at foreclosure and short sales.

For buyers, short sales and foreclosures have become synonymous with “good deals.” More specifically, international buyers are targeting these properties. Listing with an experienced agent who is educated in the short sale process will provide you with a great chance of quickly seeing a contract on your property.

In conclusion, Agents with the CDPE Designation have been trained in all aspects of the short sale process, and know how to deal with the parties involved in foreclosures. Finding a CDPE can explain what options you have, and get you on the path to recovery.

Andres Garcia
Sales Associate, CDPE
RE/MAX Gold Coast Realty
56 Newark Street
Hoboken, NJ 07030
Direct: 201 795-5200 x340
Andres@MileSquareRealty.com
http://www.MileSquareRealty.com

The importance of the Certified Distressed Property Expert (CDPE) Designation in today's market

2009-04-24T14:14:00.005-04:00

I am proud to say I recently earned my Certified Distressed Property Expert (CDPE)designation. I am not alone, at the RE/MAX International convention in Las Vegas on March 3, RE/MAX Chairman and Co-founder Dave Liniger announced the corporation’s plans of having 7,500 RE/MAX Agents earn the Certified Distressed Property Expert (CDPE) designation this year.

“The CDPE designation is one of the most important and timely educational products I have seen in over 40 years in the real estate business,” said Liniger. “I will do whatever it takes to get as many agents as possible through this course so they can help homeowners, the economy and our country.”

The Distressed Property Institute, based in Boca Raton, Fl. and launched in January 2008, offers the Certified Distressed Property Expert (CDPE) designation after comprehensive on-site or online training on how to handle short sales. The institute was founded by dynamic real estate veteran Alex Charfen.

“The fact that a global real estate powerhouse like RE/MAX has committed to training its agents on short sales demonstrates that this is a market all Realtors® must understand,” Charfen said. “Realtors® are in a position to help people avoid foreclosure. They can be a great catalyst for the recovery of this housing crisis.”

Nationally, only 12 percent of short sales are approved. Among CDPE designated Realtors®, more than 80 percent of short sales are approved. According to the National Association of Realtors®, more than 45 percent of existing home sales in the fourth quarter of 2008 were foreclosures and short sales. In a short sale transaction, homeowners sell their property for less than the mortgage amount, but avoid the foreclosure process.

The CDPE designation has been endorsed by many major U.S. brokerages.
Andres Garcia
Sales Associate, CDPE
RE/MAX Gold Coast Realty
56 Newark Street
Hoboken, NJ 07030
Direct: 201 795-5200 x340
Andres@MileSquareRealty.com
http://www.MileSquareRealty.com

Buyer's too can save on commissions

2009-04-22T22:46:00.003-04:00

I often hear the argument from buyers that they can save on the commission by working directly with the seller's agent. While giving up your advocate isn't necessarily in the buyer's best interest, the questions remains. Can a buyer save on commission?

Agents are wrong when they say you can't save money by buying a home directly through the listing agent. In many cases you can save at least 1/2 of 1% of the total purchase price. This is how that can happen. A seller lists their home. In the listing agreement the seller negotiates with their agent to offer a 1% commission reduction if the listing agent sells the home. As a buyer, you view that home and like it. You place an offer at what you are willing to pay -1%. The seller counters your offer at what they were willing to net plus full commission and fees. But wait, why full commission, why aren't they giving up the 1%? Oh, that's right, the seller put the 1% savings in the contract to save themselves 1%, not to give it to you, the buyer who had nothing to do with the original negotiation! Now what? Well if all goes well you negotiate and split the 1%. You each get 1/2%. The seller saved 1/2%. You gave up your representation and saved 1/2%. Maybe a couple of thousand dollars.

Oh but wait, I forgot, we haven't taken into account your opportunity costs. What is that you ask? That is all the opportunities you gave up using your time buying your home on your own rather then spending it in another more productive or enjoyable way. In this market it's not unfair to say my clients will look at 20 homes before deciding on one. That is 20 out of the 100 that may fit their needs. But why did they only look at 20 then? What about the other 80? Well after sitting down and speaking to my clients and viewing a few homes with them I get an idea of what they are looking for. Based on this information and knowing the homes I pre-view every day I can eliminate many of the homes on the market for one reason or another. Searching on your own you will have to pre-view your own homes. This will likely add a few weekends to your search over the course of a couple of months. Also add hours to your search in having to meet multiple Realtors all the time for individual showings. Once you have found a home add the redundancy of going over everything twice, once with your. . I mean the seller's agent and once with your attorney. After all you'll likely not entirely trust the Realtor you have chosen to work with knowing they don't have your best interests at heart. Now here's the really rough part. Take the late night at the office that you won't get overtime for. Since you don't have an advocate, you are coordinating your own closing, your lawyer, title company, mortgage company, appraiser, inspector, etc.. After all we can't trust the seller's agent to do all this, can you?

In today's world you can do everything on your own. You can invest your own money using E*Trade research. You can write up legal documents using an Office Depot CD. You can self diagnose their illness using WebMD. You can find your next home using Realtor.com. While there is an abundance of information out there, what you need is knowledge because information without understanding is useless.

We all know a few hours of research on the Internet can not replace years of experience, education, and knowledge of the market. For example, I have already spent 10 full days in conventions, seminars, and earning my Certified Distressed Property Expert (CDPE) designation this year. Add to that my 4 years of experience, the scores of closed transactions, and the 10-15 days of education I received every year for the last 3 years and you will see there is a lot to know in this ever changing industry.

So yes, a buyer can possibly save 1/2 of 1% going to the listing agent. The questions is, is it worth it to you? I know I value my clients time, I hope you do too.

Andres Garcia
Sales Associate, CDPE
RE/MAX Gold Coast Realty
56 Newark Street
Hoboken, NJ 07030
Direct: 201 795-5200 x340
Andres@MileSquareRealty.com
http://www.MileSquareRealty.com

Will mortgage rates turn housing around?

2009-03-25T21:00:00.000-04:00

With mortgage rates at historic lows, CNBC talks to Susan Wachter of Wharton Business School and Howard Glaser, a mortgage industry consultant, about whether there will be a springtime recovery in the housing market. Wachter said the economy still needs to turn around before the housing market really improves. Glaser said the money the federal government has been pumping into the system has gotten stuck at the level of the major banks and isn't trickling down to consumers.

Federal first time homebuyer tax credit

2009-03-11T22:38:00.006-04:00

Since the Federal Stimulus bill was passed a lot of people have been asking about the new first time home buyer tax credit so here is a short synopsis:

For homes purchased in 2009 a first time home buyer will receive a tax credit up to $8000. (if the home was purchased in 2008 that credit is $7500)

There are certain criteria which have to be met in order for a first-time home buyer to qualify. The main criteria are:

1) The home must be your primary residence.
2) You have not owned a main home within the last 3 years.
3) You purchased the property after April 8, 2008 and before December 1, 2009.
4) Your adjusted gross income is less than $75,000 (if you file jointly the adjusted gross income cannot exceed $150,000). As your adjusted gross income exceeds $75,000 ($150,000 for joint filers) the amount of credit you receive decreases until it is phased out entirely at $95,000 ($170,000 for joint filers).

The 2009 credit differs from the 2008 credit in the fact that it DOES NOT need to be repaid under most circumstances. The 2008 credit has to be repaid over a 15 year period.

This information is for general purposes only. Please speak to your tax consultant to see if you are eligible for this tax credit.

Buying becomes more attractive. . . especially when you can afford the bigger home

2008-12-22T23:24:00.008-05:00

Most people know that the lower your mortgage interest rate, the less money you waste in interest payments to the bank. However, did you realize the lower your mortgage rate, the faster you build equity in your home

Let's say our friend in Hoboken is currently paying $1,000 a month in rent, and would rather spend that $1,000 a month on a mortgage payment instead (I know, you'd be hard pressed to find a $1,000 Hoboken rental but work with me, it's a nice round number). If he got a 30-year fixed-rate mortgage at 7%, that would cover a $150,000 loan. Since $1,000 a month for 360 months works out at a total of $360,000 in mortgage repayments, on average about 42 cents of his mortgage-payment dollar will go towards building equity. What's more, most of that is back-ended: after five years, he will have paid down his principal amount outstanding by just $8,820.64, or less than 15% of his total payments.

On the other hand, a $1,000 payment on a 30-year fixed-rate mortgage at 4.5% would cover a $200,000 loan -- which means that 56 cents of every dollar you spend on your mortgage goes towards equity. And after five years, he will have paid down his principal amount outstanding by $17,450.82, which is 29% of his first five years' payments.

So yes, the house is $50,000 more expensive, but it's just as affordable, and you're building up more equity, not less, with the lower mortgage rate. If you look at an amortization curve for a high-interest-rate mortgage, it starts off pretty flat: most of your mortgage payments are going to interest. The lower that mortgage rates fall, the more equity you build up in the early years.

Potential borrowers lured by enticing mortgage rates?

2008-12-03T23:28:00.002-05:00

Mortgage applications surged by the largest amount on record last week as a new Federal Reserve program pushed interest rates down to their lowest level in more than 3 years, data from an industry group showed on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, for the week ended November 28 soared a record 112.1 percent to 857.7, the highest reading since the week ended March 21 when it reached 965.9.

Potential borrowers were lured by enticing mortgage rates, which dropped dramatically after the Federal Reserve unveiled a plan last week to buy up to $500 billion of mortgage securities backed by government-sponsored enterprises, Fannie Mae, Freddie Mac, and Ginnie Mae. The program also entails buying up to $100 billion of debt issued by Fannie Mae, Freddie Mac and the Federal Home Loan Banks.

Consumers who were previously on the fence to refinance or purchase a home are in a position to take advantage of the decline in rates.

In the Hudson county area rates for a 30 year fixed mortgage are currently around 5.5%.

Fed steps in and trys to say, this is the bottom!!

2008-11-25T13:04:00.004-05:00

The Federal Reserve attempted to end price declines in the housing market on Tuesday with two new programs aimed at making it easier for consumers to obtain loans for homes, cars and on credit cards.

Under the new mortgage program, the Fed will buy up to $100 billion of debt issued by government-sponsored mortgage enterprises Fannie Mae, Freddie Mac and the Federal Home Loan Banks. It will also buy up to $500 billion of mortgage securities backed by Fannie Mae, Freddie Mac, and Ginnie Mae. The Fed said that the actions were taken "to reduce the cost and increase the availability of credit for the purchase of houses, which in turn should support housing markets and foster improved conditions in financial markets more generally."

Fannie Mae's current-coupon 30-year mortgage-backed security, which is tightly correlated on a spread basis to Freddie Mac's weekly survey of consumer mortgage rates, has fallen 38 basis points on the day, which means that the 30-year mortgage rates are likely to fall a similar amount. If they do, it would bring the average rate to 5.66%, its lowest since January when the average 30-year mortgage rate was 5.48% (the 2008 average is 6.11%). In Hudson County rates were as low as 5.50% as of Tuesday morning.

Jersey City sales updates

2007-11-16T10:16:00.000-05:00

77 Hudson St - This September developer K. Hovnanian opened the sales center for their 42 story, 420 unit condominium tower. The projects one, two, and three bedroom homes are priced from the $500,000s to $3,000,000. A four alarm fire that struck the building in early October is not expected to delay the project.

Trump Plaza Jersey City - The 50 and 55 story buildings of Trump Plaza Jersey City will be New Jersey's tallest residential buildings. With 74 percent of the first tower's 445 units sold as of early September, sales at the second tower are slate to begin in early 2008.

For more information on these, or any other projects, Contact us

Rentals on the Rise

2007-11-15T09:10:00.000-05:00

With all the condo conversion over the past decade taking hundreds of rentals off the market, it's no surprise rents in Hoboken are at an all time high. However, with Upper Grand's 1000 Jefferson switching to rental at the last minute, the dearth of new rental construction is coming to an end. With 1000 Jefferson now experiencing brisk leasing activity more of the new buildings you see going up are likely to be rentals.
The buildings going up on 7th St between Grand and Adams and the new Upper Grand building going up south of ShopRite are two buildings designed and being built as rentals. However, other building originally conceived or designed as condos have now switched course as well. Recent additions to the rental supply include Velocity at 6th and Jackson as well as The Cliffs on the west end of town on Paterson Plank Rd. This new supply will likely not lead to lower rents since it will only put a dent in the local rental shortage. Hopefully though, it will at least make the process of finding an apartment in Hoboken a little less painful.

End of the hunt for Foxtons

2007-09-27T19:20:00.000-04:00

Like warm beer and David Beckham, Foxtons Inc. looks like another popular British concept that will fail in the U.S. The residential real estate brokerage firm reported Wednesday that it may go out of business due to slumping home sales.

A representative of the West Long Branch, N.J. firm, which has branch offices throughout New Jersey and southern New York State told The Asbury Park Press Wednesday that it is considering bankruptcy protection and will lay off 350 of its 380 workers. It also said it will continue to keep 4,400 listings on the market.

Senior vice president John Blomquist told the newspaper that the company no longer has the liquidity to operate as a going concern and may have to consider bankruptcy.

Several calls to company headquarters and branch offices were not returned today, and the recording this morning said to call back during business hours.

Foxtons, which had great success in London, opened in the U.S. in March of 2000. It tried to differentiate itself from competitors by undercutting the industry's 6% commission standard by paying its agents salaries and charging customers only a 2% commission.

But that policy was later modified to get better participation in showing Foxtons' listings from other Multiple Listing Services listing agents who adhered to the 6% commission policy.

According to its website, Foxtons' claims a unique employee-based business model that includes "branded' company cars for agents, the most conspicuous of which are British Mini Coopers emblazoned with the company logo. It also said its agents are all equipped with the latest communication technologies and that it had Internet virtual tours and a Web page for every home it listed.

It also said agents work "8 a.m. to 8 p.m., seven days a week."

But apparently not this week, as calls to various Foxtons' offices went unanswered.

Marshall McKnight, a spokesman for the New Jersey Department of Banking and Insurance, which also monitors real estate licensing, said today that after checking with the state's investigators, "as far as we know Foxtons is still open for business. That's what they told us this morning.

"We've had several calls [from concerned Foxtons customers], so we're monitoring them for branch compliance, because if they do close an office they have to tell us. I can't explain why they're not answering the phone," McKnight said.

According to a source, employees at one branch turned in their laptops and company cars in the building parking lot at 11 a.m. today and were told the building was off limits and that they would be getting their paychecks tomorrow.

"I guess people will be able to get a great deal on a Mini Cooper with Foxtons logos all over them," she said.

Financial Week
By Frank Byrt
September 27, 2007

Record Real Estate transaction!!

2007-08-22T14:22:00.000-04:00

Condos get Hudson's top dollar

Who says the real estate market is cooling off?

It's still red-hot on the Hudson County waterfront, where a high-roller has purchased two condos on the top two floors of a Jersey City development at a whopping price tag of just more than $6 million. It's believed to be the highest price paid for a condo in the city's history.

Even if sold separately, either likely would have fetched more than $2.3 million, the previous record for a condo sold in Jersey City.

The unnamed buyer reportedly plans to merge them into a lavish two-story penthouse at the top of the 49-story building. Once completed, the two-story penthouse will measure 4,188 square feet. That translates to roughly $1,400 a square foot.

The purchase was made at K. Hovnanian's 77 Hudson St. development. The developer announced the sale last week but refused to divulge any details about the buyer - only about the development itself.

"The sophisticated design, hotel-quality amenities, luxury materials and finishes at 77 Hudson are exactly what buyers are seeking," said Tom Graham, of K. Hovnanian Homes, in a press release boasting about the sale.

Gershon Adjaye, a broker who deals with high-end real estate in Hudson County for Keller-Williams, said the price per square foot is on the high end in the county - but it's still a steal compared to prices in the New York City market.

"The truth is the square foot price is still much less expensive than penthouse condos in New York, which don't offer the same views," said Adjaye, who is not associated with the sale.

K. Hovnanian Homes opened 77 Hudson St. for VIP sales two weeks ago, with more than 300 appointments set for the initial sales release of condos.

Approximately 50 percent of the 100 residences released already have been sold, ranging in price from the upper $400,000s to $6.07 million. Thirty percent of sales have been broker generated.

"The waterfront is an extension of the New York market, and that is still very strong," said Jersey City Housing and Economic Development Corporation Acting Director Bob Antonicello, who defined the waterfront as everything east of Marin Boulevard. "The waterfront has now become separate part of the city, with very little linkage to the rest of the city."

The previous record of $2.3 million was the price of a penthouse condo sold at the Beacon, the site of the old Jersey City Medical Center.

HIGH-ROLLER HIGH-RISE
Monday, August 20, 2007
By JARRETT RENSHAW
JOURNAL STAFF WRITER

For addtional information on 77 Hudson St contact MileSquareRealty.com

A look at the housing market finds that Hoboken, as usual, is slump-proof

2007-08-16T11:12:00.000-04:00

Excerpt from NJ.com Morning Rush for Thursday, Aug. 16
by CraigThursday August 16, 2007, 8:01 AM

The Star-Ledger has a look at the housing market today, and finds that most real estate agents are grim. There are too many houses on the market and not enough buyers. There are 72,000 unsold homes in New Jersey right now, compared to just 39,000 in June 2005. Statewide, the number of homes contracted for sale dropped by 5 percent from May to June. But in Hoboken (and Jersey City), sales activity is actually up by 12 percent.

Adams Square featured in New York Times "THE HUNT"

2007-08-13T13:50:00.000-04:00

July 1, 2007
New York Times
The Hunt
Falling in Love With Hoboken’s Prices

UNTIL their marriage last fall, Elana and James Nanscawen weren’t fussy about their living situation. Their one-bedroom rental in the financial district was perfectly adequate, if small.

“We planned so that the wedding was our focus, and we got that financial piece of it out of the way,” Mr. Nanscawen said. The same held for their honeymoon in Mexico. By spring, though, they were growing impatient to buy a bigger place where it would not be so inordinately difficult to do everything — cooking, entertaining, doing the laundry to her liking and keeping the place tidy enough for his.

When the two met three years ago, Elana Sebring, now 25, was sharing a three-bedroom rental in East Midtown with three friends from Marist College in Poughkeepsie, where she had studied fashion. The group paid about $2,400 a month.

Mr. Nanscawen, 34, an Australian, was living in a studio in Bensonhurst, Brooklyn, for $800 a month. After he graduated from the University of Tasmania in Hobart, he headed for Kalamazoo, Mich., where his mother is from. He is now an information technology manager for the Thomson Corporation in the financial district.

They were introduced by mutual friends who invited them sailing. Only Mr. Nanscawen knew he was being set up. “On this sailing trip, I met my husband and my future,” Mrs. Nanscawen said.

Tired of the long commute from Bensonhurst, Mr. Nanscawen moved to Liberty Tower on Liberty Street, the neo-Gothic office building that was converted to a co-op in 1980. He rented a one-bedroom there for $1,750, which later rose to $1,950. His bride-to-be joined him.

They enjoyed the building — especially the doormen — but over time, little things loomed large. The neighborhood shut down early, and few of their friends visited. Construction noise was everywhere.

Worst of all, “It became agitating because there was no space in the apartment to put anything,” Mrs. Nanscawen said. Their wedding gifts sat at her mother’s house in Stroudsburg, Pa. Their two closets overflowed. Only once did the couple have a dinner party, inviting four guests for risotto. Everyone squeezed around a card table that doubled as the kitchen counter. “Never again,” said Mrs. Nanscawen, an accomplished cook.

She often ripped out magazine recipes, “and James was mad because there was no place to put them,” she said. “When I put something away in our tiny little apartment, I would end up forgetting about it, so I would leave the clippings out to remind me I wanted to make the recipes. We would have weekends where we would power-clean and find recipes everywhere.”

She longed to do the laundry herself, too. Their building wasn’t even near a coin laundry, so they spent at least $20 every week for pickup and drop-off service.

“Being in fashion, I care about my clothes,” said Mrs. Nanscawen, who works for Cockpit USA, which makes military- and Americana-inspired clothing.

“Tank tops would turn into tube tops,” she said. “We had a lot of stuff shrunken or ruined, texture-wise.”

They began their hunt with a budget of $550,000 to $700,000 for a two-bedroom apartment, an amount that was low for Manhattan. “We had some married friends hunting at the same time, and they would come back to us with the same numbers we were finding,” Mrs. Nanscawen said. So they asked themselves, “Do we want to fall in love with an apartment and find out it costs a million dollars, or look at things we can afford and then fall in love?”

A good friend who lived in Hoboken, N.J., had no trouble persuading them to look there. “Take the same amount of money, and it is night and day in terms of amenities you get,” Mr. Nanscawen said. Hoboken seemed to fit their personalities, too. “You walk up and down Washington Street and it’s all strollers, a fun atmosphere,” Mrs. Nanscawen said.

A listing for a duplex condominium on Madison Street led them to Katherine Petsinis, an agent at Liberty Realty Hoboken. They found the layout awkward, but Ms. Petsinis began culling listings for them. “They wanted something luxury but not too luxury, somewhere in the middle,” she said.

Most places they saw were perfectly fine, but “it just wasn’t something where you felt it was definitely it,” Mrs. Nanscawen said. “It was always a little, little issue that we didn’t want to settle on.”

For example, they loved the apartments at 1100 Adams Street, part of the Upper Grand development, but thought they were too far from the heart of Hoboken.

The Nanscawens liked another Madison Street apartment with a large kitchen. But it was a third-floor walk-up, and they worried about access for their parents.

“We were trying to talk each other into it,” Mr. Nanscawen said. “We were saying, ‘Can we handle it? The stairs are carpeted, maybe it’s not so bad, it’s only a gradual slope.’ ” But they immediately reconsidered. “What are we doing?” he said. “This is our first home and we are committing to it, so we want to make absolutely sure that this is absolutely the place, no doubt.”

Ms. Petsinis contacted them as soon as a two-bedroom, two-bathroom condominium in their price range became available in Adams Square. The 1870 building, formerly Public School 3, the Daniel S. Kealey School, was converted to rentals in 1996 and is now being converted to condominiums.

Inside, they found 12-foot ceilings, an open layout, a dishwasher, lots of light and overhead storage. The second bedroom could function as a combination guest room, home office and future nursery. “I looked at James and gave him the eyebrows-up this-is-it look,” Mrs. Nanscawen said.

The price was $615,000, with common charges of about $350 a month, and taxes of $7,600 a year.

To keep themselves from acting impulsively, the Nanscawens had not brought a checkbook. Now they feared someone else would like the place as much as they did. So they grabbed the PATH train home and returned the same afternoon, check in hand.

In the month since their move, Mrs. Nanscawen has been organizing her recipes in a binder and planning the menu for a dinner party for 12. She bought a color-coded set of laundry bags on a rolling rack. “It is awesome” to do laundry in the building’s laundry room, she said. “We let everything accumulate because we were so busy. I did five loads at once. I was happy as could be.”

When their new furniture was delivered, the delivery man told them he had gone to school there. “He said, ‘I’ve lived here in Hoboken my whole life, and I was really excited to see they did something good with this place,’ ” Mr. Nanscawen said.

For more on Hoboken Real Estate visit

Tarragon's Upper Grand gets approval for 12-story condo building

2007-04-28T19:12:00.000-04:00

Tarragon Corp. and locally-based URSA Development Group have received the necessary approval to begin construction on a 12-story, 112-unit condominium project in Hoboken, N.J. On Friday, the city's zoning board of adjustment granted final site plan approval for 900 Monroe, which is to be the first luxury high-rise development and seventh residential building in Tarragon and URSA's Upper Grand community.

With the approval in place, the developers will begin construction in June of this year. 900 Monroe is planned to include one-, two- and three-bedroom units, including 10 two-bedroom duplexes. In addition, the building will feature 7,600 square feet of retail space and an outdoor café. The development will be located adjacent to the 9th Street light rail station. In February of 2007, the Upper Grand community was awarded the National Association of Homebuilders' Best in American Living Award for "Best Urban Smart Growth Neighborhood/Community.

Hoboken's Luxury-Condo Builders Get Lifeline From New Residents

2007-04-25T11:48:00.000-04:00

Frank Sinatra and Marlon Brando helped make Hoboken, New Jersey, famous. Now designer Michael Graves and builder Robert Toll are making the waterfront town across the Hudson River from Lower Manhattan a haven for the rich and famous.

Hoboken, a city with working-class roots, long served as a refuge of junior Wall Street analysts. Its newer residents include Governor Jon Corzine and New York Giants quarterback Eli Manning, as builders convert apartments into luxury condominiums with fitness clubs, doormen and shuttles to New York City-bound trains and ferries.

Demand for condos in the square-mile city of 40,000 residents is a lifeline for builders such as Toll Brothers Inc. that are weathering a yearlong decline in the U.S. housing market. Horsham, Pennsylvania-based Toll Brothers has three condo projects under way in Hoboken. Starwood Hotels & Resorts Worldwide Inc. already has sold 33 of the 37 condo units in the W Hoboken, a luxury hotel that it plans to open next year.

``We're killing 'em in Hoboken,'' Chief Executive Officer Robert Toll said at a March conference in Las Vegas.

Nancy Chin, who was born and raised in New York, said she recently purchased a one-bedroom waterfront condo with an oversized terrace at Toll Brothers' Hudson Tea development in Hoboken. Those units start at $600,000.

``We always loved the city, but we wanted to be on this side,'' said Chin, 57, a real-estate agent and empty nester. ``Over there, you would have a view of a wall.''

Corzine's Abode

Corzine, a former chief executive officer of Goldman, Sachs & Co., moved to a rental in Hudson Tea when he was divorcing in 2002. He may run state affairs from the condo or from the governor's mansion in Princeton when he is released from the hospital following his April 12 automobile crash, said Tom Shea, his chief of staff.

At Hudson Tea, where Manning also lives, a 1,300-square-foot (120-square-meter) two-bedroom condo with cherry hardwood floors, gourmet kitchen with six-burner stove, marble bath, and 13-foot (4-meter) ceilings goes for $1.5 million. That's about $1,154 a square foot. Manhattan condos sold for an average of $1,142 a square foot last year, according to appraiser Miller Samuel Inc.

Hudson Tea has a residents' club with a theater, fireplace and business center; a fitness center; and an indoor children's play area. Chin said the amenities and location won her and her husband over.

Hoboken, birthplace of Frank Sinatra, was a thriving industrial hub of shipping and commerce in the 19th and early 20th centuries, home to products including Lipton tea, Maxwell House coffee and Hostess cakes. The city was portrayed as a blue- collar shipping port in the Oscar-winning 1954 film ``On the Waterfront,'' starring Brando.

Magnet for Students

The maritime industry crumbled in the 1970s as companies moved to bigger ports with deeper waters. A decade later, students began flocking to Hoboken for its affordable, renovated brownstones and townhouses and its easy access to New York.

Junior Wall Streeters moved in as the number of housing units in Hoboken jumped 14 percent from 1990 to 2000. The 2000 U.S. Census showed that 98 percent of the city's housing units were occupied, 77 percent by renters.

In 2004, Toll Brothers began converting apartments to condos in what were once Lipton Tea buildings. The company is renovating an adjacent warehouse into residences called Harborside Lofts, and it has cleared away nearby Maxwell House structures to make way for the four-building Maxwell Place, which will have more than 800 units.

Architect Graves designed the lobbies, elevators and hallways for Maxwell Place, as well as the condo interiors. The development has a heated rooftop pool and garden.

Copying New York

``We've taken the best-in-show of what we find in Manhattan and we've brought it over here,'' said Henry Waller, project manager for City Living, the urban development division of Toll Brothers.

Toll Brothers is targeting Manhattan emigres seeking more space and features, empty nesters from the suburbs, and families who don't want to give up urban life, he said.

``Some people feel it's a bit nicer living outside of Manhattan and looking at it than it is living in it,'' said Brian D. Meunch, of BrianDavid Realtors, a Hoboken real-estate agency.

Not everyone agrees. Hoboken is a nice place to visit but not somewhere he would want to live, said Oliver Ryan of New York housing blog www.apartmenttherapy.com.

``Hoboken seems very 1990s,'' Ryan said. Even so, he said, it's a smart real estate investment.

Michael Barry, whose Hoboken-based Applied Development Company LLC is building the W Hotel, said residences there will range from $1.8 million to $2.7 million. Monthly fees of about $1,200 will pay for services including maids and valets, he said. Spa treatments, pet walkers and in-home botanical services are extra.

A similar, upper-floor apartment on the water would cost a minimum of $4 million on the New York side of the Hudson, Barry said.

``It's a lifestyle choice that wasn't available 10 years ago, when if you wanted a doorman building with a concierge and swimming pool you didn't have a lot of options there,'' Barry said. ``But you do now on this side of the river.''

By Terrence Dopp
April 25 (Bloomberg)